Tuesday, April 9, 2013

Money Matters Financial Services Ltd (Capri Global) - The Comeback Journey

In 2010 end, there was a big housing loan scam that rocked the nation, and Money Matters Financial Services Ltd.(MMFSL) was proved to be the biggest culprit in that scam.
The stock was trading at 712 Rs on 16th Nov 2010, and the same script hit a low of 47.5 Rs on 16th May 2011. Promoters sold 15% shares from open markets as soon as the scam hit the media, and the CEO of the company was put behind the bars.
Link For Details Of Scam: http://en.wikipedia.org/wiki/2010_housing_loan_scam_in_India

The good thing was that promoters knew that they didn't do anything wrong with the results of the company or anything like that, hence it was always on the back of their mind that they will rise again one day.
2-3 consecutive quarters after the scam, they reported heavy losses, but they ensured that they cleared all their debts (generated because of scam) in that same period.

When the script hit a low of 47.5 Rs, the promoters of the company bought back 5% shares from open market (Around 23rd May, 2011). That was the time, we felt like, a better future can be expected from the company. After those 2 horrible quarters, they went back into profits, and that boosted my confidence in the company and their future.

Then in 2012 again, as soon as the month of April came, Promoters again bought back 5% shares from open market at an avg price of 75-80 Rs.

The journey of revenues for company since Sept 2011 has been unbelievable.
Sep 11 - 83 Crs
Dec 11 - 149 Crs
Mar 12 - 183 Crs
Jun 12 - 214 Crs
Sep 12 - 293 Crs
Dec 12 - 508 Crs

The month of April is here again. And as expected, the promoters have started buying again.
On 4th and 5th of April 2013, they have acquired around 4.71 Lakh shares which are worth almost 5 Cr Rs.
As per my calculations, 5% shares would be equivalent to 16 Lakh shares (approx.)
Hence we can expect the acquisition to continue for few more days.

The Major Worry: Lots of people have asked me about the safety of investing in a company, which has already been in one of the scam. The worry among investors is pretty much valid, and probably, that is the reason why stock hasn't gone up more than 180 Rs levels, even after spectacular performance quarter after quarter.
I believe in this script doesn't mean that each and every one following this board should.
Each one is requested to analyze the script themselves and take decisions further.
Also, if anyone is afraid, calculate your risk taking ability before investing in the company.

Disclosure: I have invested in the company since May 2011 at an avg price of 53-54 Rs, and will continue to hold, as I can see further 5% acquisition by the promoters in the company.

Success is not in never falling, but rising everytime you fall!!!


  1. http://www.moneylife.in/article/bombay-stock-exchange-declares-2050-companies-as-illiquid/32018.html

    The companies include MMFSL, Photoquip and Gulshan Polyols from our blog.

    I think it will take time for people to understand how to trade these securities now.
    I dont think its a good move by SEBI..

  2. If Ajanta Pharma goes down below 650, then again it would be great entry point for long term investors, as promoters of the company has bought 0.3% of shares in the price range of 625-675...

  3. Money Matters Financial Services Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 12, 2013 to generally discuss about corporate affairs and consider inducting new member on Board of Directors of the Company.
    Source : BSE

  4. Thangamayil Jewellery Ltd has informed BSE that the Company is opening its 28th branch at Gobichettipalayam - Thiruppur District on April 15, 2013 between 09.15 am. and 10.25 a.m. admeasuring 970 sq.ft.

  5. Another 4 Lakh shares picked up by Money Matters Promoters on 8th and 9th April..

    Link: http://www.moneycontrol.com/livefeed_pdf/Apr2013/Money%20Matters_89.pdf

    5% should be over by this week or max next week I think...

  6. http://www.moneycontrol.com/news/business/gold-related-companies39-shares-crash-muthoot-down-18-_852748.html#toptag

  7. Granules India Ltd has informed BSE that a meeting the Board of Directors of the Company will be held on April 25, 2013, inter alia, to consider and approve the Audited Financial Results for the year ended March 31, 2013 and for the recommendation of final dividend for the year 2012-13, if any.

  8. Thangamayil Promoters making full use of the fall seen in prices of Thangamayil....


    So sad to see, promoters of the company on buying spree and retail public going on selling the shares...

    I dont feel that this is a bad investment at all...... They only operate in Tamil Nadu, where I dont think that the consumption of gold is going to reduce in any case...

    Secondly, how can people forget that, they showed a 1100% increase in advertising expense, which is going to benefit them in the long run....

    Long term investors has nothing to worry, staying invested in the script...

  9. Ajanta Pharma - Board to consider Dividend

    Ajanta Pharma Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 30, 2013, inter alia, to consider and approve :

    1. The audited Financial Results for the year ended March 31, 2013 and

    2. Recommending dividend, if any, on equity shares of the Company for the Financial year 2012-13.

  10. The mail that I got from Granules management:

    Hi Kunal

    Thanks for the e-mail. Our expansion at the Gagillapur Facility is complete and we expect to scale up production throughout the quarter. As you mentioned, the facility was delayed by several months and this was primarily due to teething problems once we started manufacturing. Dr. Bhaskar resigned from the Company for personal reasons. Fortunately, this was not a sudden resignation and we had several quarters to work on the transition which is why the handover process has been very smooth.

    As for the stock price, I realize it’s frustrating to see the stock have such big swings throughout the past year. I think it’s important to note that many small and mid-cap stocks had swings like Granules, such as Shasun. In addition, let’s note that our stock is up 13% over the past year and also increased its dividend last year, for the second year in a row. We believe our strategy offers sustainable revenue and margins which will improve our returns for the long-haul.

    On a related note, we will be releasing earnings on Thursday, April 25th.


  11. Looks good if what all said is correct....
    The reply from the management was prompt..... We could gain a lot if all the things mentioned is proved to be true..
    Fingers crossed... :-P

  12. Granules India announced financial results for its fiscal year 2013 ended March 31, 2013. Granules consolidated net sales increased 17 per cent to Rs 764 crore while consolidated net profit increased nine per cent to Rs 33 crore.

    The company reported sales of Rs 204 crore., its highest ever, in Q4FY13, an increase of 9 per cent compared to the comparable quarter in FY12. In addition, PBT before F/X increased by 15 per cent to Rs 18 crore.

    Granules also announced the completion of the expansion at its Gagillapur Facility. The company has commenced operations of the new capacity and expects to scale up operations over the next several months. Due to the delay in the scale-up of the new capacity, margins slipped since the company incurred costs to run the new facility without a concurrent increase in production. The company expects margins to increase since production is increasing at the facility.

    “While we faced a setback in scaling-up our formulation expansion, we are optimistic for the future. Our strategy has enabled us to entrench ourselves within our industry and become synonymous with the products we produce. Due to our ability to provide high-quality products at a cost effective price, we have been able to work closely with market leaders which has resulted in sustainable revenue. We have made significant improvements over the past year and believe our foundation is stronger than ever. In FY14, we’ll continue to shift to formulations which will result in an improvement in profitability.” said Krishna Prasad, Managing Director of Granules India.

  13. Granules India Limited has informed the Exchange that the Share Transfer and Shareholders/ Investors Grievance Committee at their meeting dated April 25, 2013 has approved to allot 5,000 equity shares in consequent to exercise of options under ESOP 2009

  14. Thangamayil Jewellery Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on
    May 24, 2013, inter alia, to consider and approve the Audited Financial Results of the Company for the year ended March 31, 2013 and to recommend a dividend, if any.

    Remember, Thangamayil is a good dividend paying company. Last year, they paid 7 Rs per share dividend. This time it can be same atleast, if not more.

    In addition, Promoters of the company, are buying the shares daily, which hints that valuation is quite cheaper right now.

  15. Money Matters has been on a role since last few days....
    If I am not wrong, I suggested this stock, very few days ago, when it was trading around 110..... and suddenly it has shoot up to 175 odd levels....
    This journey has been seen just a week before the results....It indicates that results are going to be awesome, as far as I think....
    People who invested around 100 can take their own decision, about profit booking...
    I can suggest anything only once the results are out...

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